Citigroup CEO Vikram Pandit quits, Citigroup stocks up 1.5%

Written on:October 17, 2012
Comments
Add One
Vikram Pandit

Vikram Pandit’s sudden exit shocks Citigroup employees and investors

In a sudden turn of events, Vikram Pandit, Citigroup CEO, quit from his position when tensions between Chairman Michael O’Neill and CEO Vikram Pandit reached a boiling point.

Tensions between Michael O’Neill, the chairman and Vikram Pandit, the CEO started brewing from day one of O’Neill’s takeover of reigns as a Chairman of the Citigroup in April.

According to sources, the tension between chairman O’Neill and CEO Vikram Pandit, hit the peak during a baord meeting on Monday night, when O’Neill criticised the Citibank CEO for not being involved in the day-to-day operations of the bank, and told him to get more involved.

Vikram Pandit, who had been mulling over quitting the bank for sometime now, took the opportunity to step down from his position. Sources also said that O’Neill did not try to stop him.

What followed after Vikram Pandit’s abrupt departure from the position of Citigroup CEO was that the board elected Michael Corbat, the head of Europe, Middle East, and Africa, as the new Citigroup CEO. The appointment of the new CEO stunned the employees and investors early on Tuesday morning.

It is also believed that CEO Vikram Pandit had vehemently opposed split of the bank and now, with his exit, these talks could revive.

On Tuesday, the Citigroup stock sold off sharply, but by the close, it was up more than 1.5%. In general, bank stocks under-performed on Tuesday with the KBW Bank Index (BKX) falling 0.50% compared to an over 1% gain in the S&P 500.

Related:
HSBC UK head Joe Garner resigns, Antonio Simoes to succeed
Glencore revised bid ousts Mick Davis from CEO role of merged entity

     

Leave a Comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

 

Previous post:

Next post: